The Apex bank, Central Bank of Nigeria, CBN, says despite a 26.6 per cent increase in the banking system liquidity, commercial banks borrowed N124.62 billion from its Standing Lending Facility (SLF) in May 2022.
The CBN disclosed this in its Monthly Economic Report for the period saying that the facility increased to N737.05 billion in May from N612.43 billion in April.
The apex bank, however, said that commercial banks deposited N680 billion in its Standing Deposit Facility, SDF, during the period.
The CBN said: “Despite the improved liquidity, the total standing lending facility increased considerably by 20.4 per cent to N737.05 billion relative to N612.43 billion at end-April 2022.
“Similarly, relative to the preceding month, the total standing deposit facility increased slightly by 0.2 per cent to N321.23 billion from N320.55 billion.”
According to the CBN, the average banking system liquidity increased by 26.6 per cent to N197.84 billion in May from N156.30 billion in April.
It stated: “Average banking system liquidity increased by 26.6 per cent to N197.84 billion relative to N156.30 billion in the preceding month.
“The major drivers of liquidity in the review period were fiscal injections (N813.86 billion), repos (N870.32 billion), and Open Market Operations, OMO, bills repayment (N643.01 billion).
“The maturities of OMO bills and repos were 238.57 per cent and 83.29 per cent higher than the preceding month’s level of N189.92 billion and N474.83 billion, respectively.”
